In the circular-flow diagram,a firm is an:
A)organization that produces goods or services for sale.
B)individual or a group of people who share their income.
C)organization that sells factors of production.
D)organization that purchases goods and services.

Question

Quizplus · Accepted Answer

A firm is an organization that produces goods or services for sale in the market. They employ factors of production such as labor, capital, and land to create goods and services that are sold to households or other firms.

In the Circular-Flow Diagram,a Firm Is An